Adjust Prepaid Expense Asset Subsidiary
These steps explain how to adjust prepaid expense items. A prepaid expense is an expense that is being paid in advance and expended on your credit union books over a period of time.
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An example would be league dues or a maintenance contract, which would be paid up front with the benefit received throughout the year.
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For Prepaid Expense items, an adjustment made here will alter the Net book value on the subsidiary record (by debiting or crediting the Asset/Liability G/L).
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Launch Tool #1772 Work/View Subsidiaries.
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Highlight the prepaid asset (Item type “PE”) to adjust and select Adjust.
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In the Transaction post date field, enter the date that the activity needs to be posted to the subsidiary record history and the general ledger.
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Enter a description of the activity.
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In the desired G/Ls to adjust, enter a Debit/Credit amount.
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Use enter to accept the entries.
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Click Comments to enter additional information on the adjustment, if applicable.
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Click Create J/E if a J/E needs to be created to post to CU*BASE General Ledger. Click Skip J/E if the adjustment needs to affect only the subsidiary record.
Validate Activity
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In Tool #1772 Work/View Subsidiaries, highlight the previously adjusted subsidiary.
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Select History.
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Verify the activity posted as expected.
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The Net Book Value after adjustment should match the Net Book Value on the Subsidiary Record.
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Post the J/E (if created)
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Launch Tool #61 Create/Post GL Journal Entries to post the J/E.
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Highlight the previously created J/E.
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The J/E should have an ID of “PE” and the effective date should be the date you entered as the Transaction post date in your adjustment.
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Select Post.
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A confirmation pop-up appears. Verify the correct J/E was selected and click Post to confirm.